Punjab and Sind Bank defrauded of ₹38.19 crores

State-run Punjab and Sind Bank said it has been defrauded of ₹ 38.19 crore by Ranchi Expressway Ltd. The bank also said that it had already made provisions on this count to the tune of ₹15.28 crore

 Punjab and Sind Bank (Photo Courtesy: IANS)
Punjab and Sind Bank (Photo Courtesy: IANS)
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IANS

State-run Punjab and Sind Bank on Friday said it has been defrauded of Rs 38.19 crore by Ranchi Expressway Ltd. The bank also said that it had already made provisions on this count to the tune of ₹ 15.28 crore.

Last year, Punjab and Sind Bank (PSB) had reported Rs 238 crore fraud to the Reserve Bank of India (RBI) relating to allegations of diversion of funds by Bhushan Power and Steel Ltd.

"NPA (non-performing asset or bad loan) Account, namely M/s Ranchi Expressway with outstanding dues of ₹38.19 crore has been declared as fraud and reported to RBI as per regulatory requirement. Bank has already made provisions amounting to ₹15.28 crore, as per prescribed prudential norms," Punjab and Sind Bank said in a regulatory filing.

The bank's stock closed lower on Friday by 2.21 per cent at ₹19.95 a share on the BSE.

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